No new projects in ‘infra-driven’ BMC budget

MUMBAI: The Brihanmumbai Municipal Corporation (BMC) presented a historic budget on Tuesday, its biggest-ever, pegged at ₹74,427.41 crore for FY 2025-26. It exceeded last year’s budget by 19.45%, at ₹59,954.75 crore for FY 2024-25. The budget document, however, showed an increase of 14.19%, taking into account mid-year revised estimates of 2024-25 ie, ₹65,180.79 crore.

Interestingly, while no new projects were announced, the budget has been described as ‘infrastructure-driven’, as large budgetary allocations have been made towards ongoing, big-ticket infrastructure projects in Mumbai.

Also, no new taxes were announced, except that the BMC is seeking legal opinion to introduce a Solid Waste Management (SWM) user charge to be levied on the end-user, ie individual apartments, by amending the existing solid waste management sanitation byelaws of 2006.

This was the first-ever budget presented by municipal commissioner and administrator, Bhushan Gagrani, and also the fourth budget presented by an administrator in the absence of an elected body.

Historically, the revised estimates of capital expenditure (meant for various development and infrastructure works) have always been lower than the budget estimates. However, the situation was reversed for the first time for FY 2024-25, and the BMC will continue with this policy for FY 2025-26

too, to focus on sustainable civic facilities and controlled revenue expenditure.

In line with this policy, this year too, the BMC will maintain an upward trend in expenditure on infrastructure projects, to provide better facilities for the citizens of Mumbai. Capital expenditure has increased from ₹22,787.16 crore in 2024-2025 to ₹26,355.74 crore. The capital expenditure for infrastructure projects such as the Coastal Road, GMLR, and sewage treatment plant has increased from ₹10,210 crore to ₹13,310.97 crore.

Revenue expenditure, which includes salaries of employees, pension and establishment costs, proposed at ₹28,763.94 crore in 2024-2025, has increased to ₹31,204.53 crore in 2025-26. Significantly, until 2023-24, revenue expenditure constituted 60% of the budget estimates, while capital expenditure was 40%. This trend was reversed for the first time in 2024-25 and continues in the budget estimates for 2025-26, with 42% of the budget estimates reserved for revenue expenditure and 58% for capital expenditure.

While no new projects were announced in the budget, the civic body has requested the state government to declare the BMC’s big-ticket projects as ‘vital urban transport projects’ under Section 124B (2-1A) of the Maharashtra Regional and Town Planning Act, 1966. If the request is granted, the BMC would be able to retain 50% of the cess collected through stamp duty, while handing over the remaining 50% to the state government.

These projects include the Mumbai Coastal Road (South) Project, Goregaon-Mulund Link Road (GMLR), Mumbai Coastal Road (North) Project (Versova to Dahisar), and Elevated Road from Link Road to Dahisar (W) to Mira-Bhayander (W) (Coastal Road last leg).

On concreting roads in Mumbai, Gagrani said 50% of the work is expected to be completed by June 2025. If residents oppose the concreting of roads in their neighborhood, the BMC will not proceed with the work.

An access-control project is underway to improve road quality, and upgrades to the Eastern Express Highway and Western Express Highway to reduce traffic congestion. Additionally, a universal footpath policy is being developed to improve pedestrian facilities.

Gagrani also said a budgetary allocation of ₹220.12 crore has been made for developing open spaces and gardens, including the proposed 290.12-acre Mumbai Public Park. This park will cull a portion from the Royal Western India Turf Club and the Mumbai Coastal Road (South) project, adding 300 acres of open spaces.

The BMC has also set aside ₹181.56 crore to repair and improve several markets across the city.

As part of a long-term strategy, the BMC plans to enhance its revenue by revising the various fees and charges levied by different departments. It has also requested the state government to issue directions to ensure that the premium from additional FSI (Floor Space Index) is shared between the state, BMC, MSRDC and the Dharavi Redevelopment Project. “As a result, BMC would receive 50%, the state government 25%, and MSRDC 25%. To date, BMC has received its 25% share, adding ₹70 crore in revenue, and we are projected to earn ₹300 crore in 2025-26,” said Gagrani.

He also mentioned other revenue generation strategies such as the vacant land tenancy policy, where land will be developed for public purposes and converted into leases wherever possible. This is expected to generate ₹2,000 crore annually over the next four years through one-time premium and ground rent.

Additional revenue will come from the proposed transportation and commercial hub at the Dahisar check naka along the Western Express Highway. The BMC also plans to generate revenue by collecting property taxes from commercial units in slums, which is expected to yield ₹350 crore. Furthermore, the BMC will auction underutilised plots in areas such as Worli and Crawford Market.